Vientiane, Laos — Southeast Asian nations and China signed an accord Monday to create the world's biggest free trade area by removing tariffs for their 2 billion people by decade's end -- a key step in their vision of a trade bloc to rival Europe and North America.
Leaders in the 10-member Association of Southeast Asian Nations also signed a pact to flesh out their agreement last year to create an ASEAN Community along the lines of a unified Europe by 2020. It aims to create a common market with common security goals.
"China's initiative has put both the U.S. and Japan on the defensive," said Chao Chien-min, a Chinawatcher and political science professor at Taiwan's National Chengchi University. "China is using its huge market as a bait to lure ASEAN countries away from the U.S. and Japan and build closer relations."
The ASEAN-China accord aims to remove all tariffs by 2010, and is part of a wider "plan of action" to cooperate in politics, security, military affairs, transportation, information technology and tourism.
It would build on two-way trade expected to surpass $100 billion this year. The accord also sets up arbitration of trade disputes.
The ASEAN members are Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam.
Chinese Premier Wen Jiabao signed the landmark trade accord with ASEAN leaders Monday at a conference center built on a palm-fringed swamp in sleepy Vientiane -- the first such international event held in the isolated communist nation of Laos.
"It's a very good agreement," Chinese Commerce Minister Bo Xilai said afterward.
ASEAN also plans free trade areas with Japan and South Korea -- and was to sign a blueprint for economic cooperation with India during the two-day summit ending today. A free trade agreement with India is still many years away.
| Business leaders and others interested in international trade are invited to attend a Kansas International breakfast Friday at Alvamar Country Club. The 7:30 a.m. event will include a discussion of foreign trade zones led by Al Figuly, president of the Greater Kansas City Foreign Trade Zone Inc.; and a talk about international shipping led by Chris Gutierrez, president of SmartPort Inc. Cost of the breakfast is $15, and $10 for students. For more information or to register, contact Christina Biagioli at 865-4426, or cbiagioli@lawrencechamber.com. |
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